Blue Dolphin Energy Company (BDCO)

[Milo1]

Valuations!

From RealDutch

EV/EBITDA for oil production companies = 8.3

EV (Enterprise Value) for BDCO = $72M
This is the price you would have to pay when you acquire the company (which includes all the debt).

EBITDA for this year, oh dear. Why not make it $72M?

Then EV/EBITDA = 72/72 = 1
Which means we are 8.3 times undervalued which means we should be trading at $10.

So far good?

But things are going to change around here. By year end the company will be debt -free, we will be trading at $10 and have a market cap of $150M.

Then EV/EBITDA = 150/72 = 2.1

IOW, we should have a market cap of 8.3 x 72 = $598M
Which gives us a share price = 598/15 = $39.9

I hope I didn't make any mistakes. I'm good but I'm not that good.
So please correct me if I'm wrong.